Risks & Uncertainties
As a leading UK food producer operating in a highly competitive industry, it is critical that the Group identifies, assesses and prioritises its risks.
RISK MANAGEMENT FRAMEWORK
The Group has formal risk management processes in place to support the identification and management of risks across the business. These are regularly reviewed and updated for changes within the Group, the industry and the wider economy. The Board is ultimately responsible for the establishment and oversight of the Group’s Risk Management Framework.
The Internal Audit function provides independent assurance to management, and the Audit Committee keeps under review the effectiveness of mechanisms put in place to mitigate risks. This process recognises the close relationship between Internal Audit and the effective management of risk. A Group risk register is in place which is generated from site risk registers owned by operational management and also contains identified overarching Group risks which could have a significant impact on the business as a whole.
The Group Risk Committee, comprising senior management and chaired by the Finance Director, meets four times a year and provides oversight and advice to the Audit Committee and Board in relation to current and future risk exposures and risk mitigation strategies.
RISK MONITORING PROCESS
The Board formally reviews the Group risk register on at least an annual basis and, in addition, receives a quarterly update report on the risk profile facing the Group. For the year ended 31 March 2016, the risks facing the Group are broadly consistent with the previous year, with no significant changes identified.
After the year end, the Group acquired CCL Holdings (‘Crown’) and its subsidiary Crown Chicken. The specific risks and uncertainties facing this business will be formally assessed over the coming months.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the Group are summarised here.
However, these are not intended to be an exhaustive analysis of all risks currently facing the Group.